Deputy Steven S. Donnelly:

It has declined by approximately 10%, a significant figure, which is great. I understand the Minister's argument that it is handy to have a price dependent tax in place in case the manufacturer increases the price, as this would clearly deliver a return to the Exchequer. The concern raised by the Irish Cancer Society is that this facility also works in the opposite direction. It is concerned about the ability of cigarette manufacturers to minimise the price of cheaper cigarettes with a view to ensuring people continue to smoke. The ad valorem tax, even at 8%, may be marginal but it allows the cigarette manufacturers to leverage downwards the price of lower end cigarettes. It is worth bearing this in mind.